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TOP STORIES
Gold Standard pauses Zimbabwe carbon project issuances as government crafts revenue plans
Certifier Gold Standard has paused issuances of carbon credits from projects based in Zimbabwe until it learns more about the government’s plans to take revenue from such activity.
Belarus group’s 2-Mt carbon credit contribution to help launch Zimbabwe bourse revealed to be banned Russian offsets -reports
A donation of 2 million carbon credits made last week by a Belarusian group to kick-off trade on Zimbabwe’s new carbon exchange has been reportedly revealed to be comprised of banned Russian offsets, in a development that could further deter climate-related investment in the African nation.
AMERICAS
ANALYSIS: Experts propose designer solutions for Canada’s struggling 2 Billion Trees programme
Innovative solutions, a focus on quality, and local investments and partnerships could improve Canada’s ambitious 2 Billion Trees programme that was found falling well short of its targets and 2031 forecast goals at its first audit, experts told Carbon Pulse.
Lawsuits against Virginia RGGI repeal can begin later this month
Legal attempts to block Virginia’s planned exit from the RGGI cap-and-trade system may be filed on the same day that Governor Glenn Youngkin’s (R) repeal regulation will be published in the state registrar, an environmental lawyer told Carbon Pulse on Tuesday.
RGGI states decrease allowance volume for Q3 sale
Auction volumes offered at RGGI’s Q3 auction will decrease slightly after last quarter’s uptick, the power sector cap-and-trade scheme’s notice showed Tuesday.
US EPA implements next stage of HFC phasedown trading system
The US EPA on Tuesday issued a final rule governing the next phase of the agency’s programme to wind down the use of high global warming potential HFC gases, including the allocation methodology for giving tradable allowances to regulated entities.
Canadian carbon removals firm secures $80 mln in fresh funding
A Canadian carbon removals company has secured $80 million in new investment.
EMEA
UAE ups Paris emissions pledge as it prepares to host key climate summit
The UAE has revised its Paris Agreement emissions pledge, with the host of the upcoming COP28 UN climate summit setting an absolute GHG cut goal for the first time while flagging plans for an emissions trading mechanism.
Few signs of EU industrial demand recovery as downside carbon price risks accumulate -analysts
Sustained weak industrial demand in the EU is to keep the bloc’s compliance carbon prices under pressure during H2 as bearish fundamentals could push EUAs towards “fair value” in the €80-85 range, analysts said in a report published Tuesday.
Euro Markets: EUAs erase early losses to retake key technical level as energy prices wilt
EUAs rallied on Tuesday’s daily auction and surged late on to settle at their highest in five days as traders strove to keep prices near a key technical level, with one eye on Wednesday’s lack of an EUA sale, while energy markets fell as fundamentals continue to look weak.
EU proposes a greater shift to rail freight to help cut emissions
The EU’s executive arm is aiming to make the transport of goods more efficient and sustainable via a new proposal it announced on Tuesday, despite a number of the bloc’s leaders and parliamentarians calling for a pause in green legislation.
INTERNATIONAL
Private sector commits $2 billion in climate finance under UK-US initiative
Companies, financiers, and philanthropists announced a collective $2 billion in investments in energy transition, climate resilience, and nature-based solutions projects in emerging markets at a joint US-UK gathering this week.
Researchers call for variable carbon tax targeting luxury goods over basic needs
Academics have proposed implementing a global carbon tax whereby different goods and services are subjected to varying levels of pricing according to their considered necessity for basic human life, with luxury services to receive a higher levy than food and heating energy use.
ASIA PACIFIC
South Korea to cut 30 MtCO2 through domestic and overseas forestry projects
South Korea aims to sequester nearly 30 million tonnes of CO2, or 21% of the emissions reductions target, by 2027 through forestry projects both at home and abroad, including buying around 1 mln REDD+ credits annually.
AU Market: ACCU price drops to near two-year low before sharply rebounding
The spot price for Australian Carbon Credit Units (ACCUs) dropped to a near two-year low at market close on Monday before rallying sharply Tuesday off large credit volumes changing hands.
Australian hydrogen developers sign MoU with Korean utility, as country lags on its green energy dreams
An international consortium developing a massive green hydrogen project in Australia signed an agreement with a Korean power company Tuesday, however the project’s incremental progress highlights the risks that the country is falling behind on its green energy superpower ambitions.
Japan ponders new measures to promote hydrogen fuel cell vehicles
Japan is considering the introduction of more measures to popularise the use of hydrogen in mobility, with relevant policies set to be launched by the end of this year, according to a work-in-progress report released Tuesday by a government ministry.
VOLUNTARY
ACX partners with EcoRegistry and Cercarbono to broaden supply base
Carbon credit exchange operator ACX has teamed up with Colombia-based registry EcoRegistry and certifier Cercarbono for the development of the voluntary carbon market, with the aim of facilitating trades and further expanding its supply base.
Better MRV needed for ‘climate-smart’ practices critical to increasing GHG absorption of US forests -study
US forests absorb 13% of the country’s annual greenhouse gas emissions. Implementing ‘climate-smart’ practices could increase this, but according to a new study, reliable tracking and quantification are needed to encourage adoption.
SHIPPING
Coalition of cargo owners pool demand for zero-emission solutions by 2025
A coalition of large cargo owners, including the world’s largest online retailer Amazon, announced it is pooling demand to request zero-emission shipping services by 2025, it said in a statement on Tuesday.
BIODIVERSITY (FREE TO READ)
EU lawmakers scramble for compromise as nature bill remains divisive
The European Parliament’s position on the highly contested nature restoration bill remained in the balance on the eve of a crunch vote on Tuesday, with efforts to craft a compromise struggling to gain traction.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required
INTERNATIONAL
Forest fight – The UN’s flagship climate fund is giving nearly $190 mln to an investment programme that finances some of the world’s biggest farm companies in a bid to preserve tropical forests. The Green Climate Fund (GCF) approved the project at its board meeting on Tuesday despite opposition from civil society campaigners that accused the “highly dangerous” programme of greenwashing companies linked to deforestation. The money will support the activities of the &Green Fund, a Dutch investment vehicle that aims to stop deforestation in the supply chains of products like livestock, palm oil, and rubber. The fund claims support from the GCF will avoid emissions of 339 Mt, about as much as Poland emits in a year. Launched in 2017, it counts among its existing backers the Norwegian and UK governments, the Dutch development bank FMO, and consumer giant Unilever. Target countries include Brazil, Cameroon, Colombia, Ecuador, and Indonesia. The fund says it offers loans to producers on the condition that they adopt sustainable practices, but campaigners have criticised it for financing companies accused of destroying the environment. (Climate Home)
EMEA
Slipping emissions – In 2022, Swiss CO2 emissions from petrol and diesel used in transport fell by 1.1% compared to 2021, and compared to 2019 the decline is more than 8%, the government said in a release. Emissions related to fuels – mainly oil and gas after adjusting for weather variations – continued to decline in 2022, and were 4.9% lower compared to 2021. This decrease was mainly due to greater energy efficiency of buildings and increased use of renewable energy for heating.
Not worth it – New oil and gas fields in the North Sea would produce only enough gas to satisfy the UK’s needs for a few weeks a year, with a minimal impact on energy security, analysis has found, as reported by the Guardian. Fields now under consideration would supply at most an additional three weeks of gas a year to the UK, from 2024 to 2050, even if none of the gas was exported. In reality, it is more likely that much of the gas would be exported overseas to the highest bidder, as is currently the case with about 60% of the UK’s gas production. Over the same period, new oilfields would supply at most about five years of oil demand, if none was exported, according to the analysis of government data.
ASIA PACIFIC
On the edge – China could see a rising risk of damage to crops and power grids due to prolonged heatwaves and the threat of severe floods, South China Morning Post reports, citing a string of weather warnings published by Chinese authorities. The Ministry of Agriculture and Rural Affairs and the China Meteorological Administration have warned that adequate water is needed for fields to reduce temperatures and prevent premature ripening, particularly in the south, given that temperatures are forecast to stay above 35 degrees C across much of southern China over the next 10 days.
SMR development – South Korea has kicked off a government-led project worth 399 bln won ($305.4 mln) to foster research and development of a homegrown small modular reactor (SMR), aiming to develop a next-generation innovative SMR by 2028, according to the Korea Times. The country’s benchmark firms in the sector, including Korea Hydro Nuclear Power, Samsung CT and POSCO EC, are participating in the initiative. SMRs, as advanced nuclear reactors, have a power capacity of up to 300 megawatts per unit, which is about one-third of the generating capacity of traditional reactors, the report said.
More transparency – Japanese trading house Mitsui and advertising agency Hakuhodo have teamed up to establish a new company that helps link consumer actions and business efforts toward the realisation of a low-carbon society, NHK reports. The venture, named ‘Earth hacks,’ uses a decarbonisation scoring scheme indicating a company’s reduction in CO2 emissions to help businesses make their carbon footprints more transparent to consumers. It has provided services to over 70 Japanese corporates, including Toyota, Japan Airlines, and UCC Food Service Systems.
In the zone – The Queensland government has identified 12 renewable energy zones across the state that will form the backbone of its A$62 bln plan to decarbonise its electricity supply, The Guardian reports. the Palaszczuk government says it wants wind, solar and pumped-hydro projects to be concentrated in these zones and connected to a “super grid” of renewable power, storage and transmission lines by 2035. Queensland’s minister for energy, renewables and hydrogen, Mick de Brenni, told the Guardian the new renewable energy zones would help secure community support for “the biggest economic transition project that Queensland has ever embarked upon”. The 12 proposed zones are split into three regions. Southern Queensland is earmarked for five zones, with four in central Queensland and three in the north of the state. About 22 GW of new solar and wind projects will need to be connected by 2035 within the zones to meet its renewable targets, the government says. The state currently has 16 GW of electricity generation, including 8 GW of coal and 3.6 GW of utility-scale solar and wind.
Enabler – Japan’s JX Metals have signed a MoU with Anglo-Australian miner BHP, forming a partnership to help each other reduce their respective GHG emissions in the copper supply chain while increasing its sustainability, BHP announced. Through the “Green Enabling Partnership” the two companies will support the development of a responsible copper supply chain though enhancing traceability and material origin verification across industry, from producers to downstream consumers, BHP said. The partnership also aims to advocate for circular economy and GHG emissions reduction through copper concentrates and sulphuric acid supply between both parties, sharing knowledge in areas of estimating and reducing carbon footprint of electrolytic copper, and engaging in R&D to energy efficient smelting operations and improved material processing.
VOLUNTARY
Fraud, frankly – The vast majority of carbon offset projects are “fraud”, according to Scott Kirby, CEO of US-based United Airlines. Speaking during a Politico-hosted event on Tuesday, Kirby argued that while there is nothing wrong with planting trees or saving forests, most of these projects would have happened anyways, and they also do not do anything to help prevent climate change. Kirby has made similar remarks before, and says that United is “100% green”, rather than net zero. The Chicago-headquartered company in 2020 snubbed offsets in favour of sustainable aviation fuels and direct air capture in order to achieve carbon neutrality by 2050.
Verra methodologies – Offset standard developer and manager Verra on Tuesday announced it is revising blue carbon methodology its include conservation activities and to ensure that the methodology reflects the most up-to-date science, data, and technology for blue carbon ecosystems. Upon release of the revised methodology, Verra will inactivate the use of the tidal wetland modules in the VM0007 REDD+ Methodology Framework. Projects using VM0007 that have requested pipeline listing on the Verra Registry prior to that date will have a six-month grace period to complete validation and request registration. Additionally, Verra also announced Tuesday it is inviting proposals for the development of a new VCS methodology or module under VM0042 Methodology for Improved Agricultural Land Management, V2.0 for the quantification of GHG emissions in rice production systems. Verra is initiating the development of a new methodology or module following the inactivation of the UNFCCC CDM rice methodology AMS-III.AU.: Methane emission reduction by adjusted water management practice in rice cultivation.
AMERICAS
Happening in Jalisco – The Architecture for REDD+ Transactions (ART) programme on Monday announced it approved a TREES concept listing for Mexico’s Jalisco state. The proposed jurisdictional scale REDD+ programme in Jalisco would include roughly 4% of Mexico’s forest cover, and credit emissions reductions made over 2022-26. All TREES credits would be used for compliance against Mexico’s Nationally Determined Contribution to the Paris Agreement, according to the listing.
Energy boost – The US Department of Energy will give $207.6 mln to nine states and three tribal nations for electricity grid investments, and California will use its $67.5 mln share on energy resilience and storage. California’s share will seek project applications under the Community Energy Resilience Investment (CERI) programme in the first quarter of 2024 to assist disadvantaged communities. The California Energy Commission will hear public feedback in the fourth quarter of this year on the programme. (Utility Dive)
Through the Telescope – Telescope Innovations, a chemical technology company, has been awarded $292,333 through Canada’s Mining Innovation Commercialization Accelerator (MICA) Network to support its development of carbon-negative production of lithium carbonate from continental brines. The company plans to use its automation and analytical technologies to speed up the development cycle for these processes, aiming for battery-grade lithium carbonate production from different quality brine sources. This project will work in synergy with Telescope’s collaborative efforts with Standard Lithium and Natural Resources Canada to increase the production capacity for crucial battery material while promoting a lower-carbon economy. Telescope said it offers scalable manufacturing processes and tools for the pharmaceutical and chemical industry, including flexible robotic platforms and AI software.
SCIENCE & TECH
Ethylene evolution – Technip Energies and LanzaTech Global have entered into a joint collaboration agreement to create a sustainable pathway for the production of ethylene, a fundamental building block for many chemicals and materials, using their combined technologies. LanzaTech’s carbon capture and utilisation technology, together with Technip Energies’ Hummingbird technology, transform waste carbon into ethylene, replacing the traditional production process, which is a major source of GHG emissions. The process involves capturing up to 95% of the CO2 from an ethylene cracker’s flue gas, mixing it with hydrogen, and transforming the captured waste carbon into ethanol using LanzaTech’s technology. The ethanol is then dehydrated to ethylene using Technip Energies’ technology. The companies have collaborated on sustainable solutions since 2020, including the production of EVA foam for running shoes. The aim of the new process is to retrofit onto ethylene crackers worldwide, thereby supporting decarbonisation efforts.
AND FINALLY…
Be lighter – Japan Airlines (JAL) will start renting clothes at the destination for travellers taking JAL-operated flights to Japan from overseas to reduce the weight of aircraft, mitigating the environmental impact, the carrier said in a statement. JAL and trading firm Sumitomo Corporation have launched a clothing-sharing service named ‘Any Wear, Anywhere‘ for the initiative, and the Japanese airline will measure checked-in baggage to see how much emissions a passenger has reduced by choosing this service. Such activity can also contribute to the circular economy by utilising excessive apparel inventory and used clothes that have accumulated in the East Asian country, JAL said. (Insider)
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